U.K. Recovery Postponed Again

By

Richard Barley

Nov. 14, 2012 2:09 p.m. ET

The Bank of England has faced plenty of flak over its forecasting ability in recent years. Its latest Inflation Report is unlikely to have won over any skeptics. The BOE still forecasts inflation returning to the 2% target and growth recovering—but yet again pushes that happy state of affairs further into the future. The near-term outlook is gloomier.

After a steady fall, inflation bounced to 2.7% in October from 2.2% in September. An increase in inflation was expected, due to a rise in university tuition fees. But gas and...